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Amy Kim Commercial Market Representative

Office of Government Contracting – Area II U.S. Small Business Administration

Interactive tool to help determine size status

Must use 2012 NAICS codes

Instructs a firm entering a wholesale or retail NAICS code to use the manufacturing code

Available at www.sba.gov/size-standards-tool (also accessed from SBA homepage)

2) Click “Add This NAICS Code”

Receipts-based Size Standards

1) Enter one or more NAICS codes here

3) Click “Continue to Next Step”

1) Click here for definition & calculation of receipts

2) Enter average three year receipts here

3) Click “Continue to Next Step”

Total income (Line 6 on IRS tax return form) + COGS (Line 2 on IRS tax return form)

Exclusions from receipts

Average annual receipts: Total receipts over last 3 completed fiscal (taxable) years ÷ 3

Affiliates must be included in calculating total receipts

1) Enter one or more NAICS codes here

2) Click “Add This NAICS Code”

3) Click “Continue to Next Step”

1) Click here for average employee # calculation

2) Enter 12 month average employee number here

3) Click “Continue to Next Step”

Based on # of employees for each pay period for the preceding completed 12 calendar months

Full-time, part-time and temp employees counted

Affiliates (domestic and foreign) must be included in calculating employees

Directs to a manufacturing NAICS code

Main Issue What should be the date for size determination when a concern was acquired after self-certification?

Background

◦ 2 Protestors challenged SSU’s size

CO: Amendments triggered re-certification

The W.I.N.N. Group: Questioned SSU’s ability

◦ SBA determined SSU’s size as of 1/26/2011 and found the concern small

SSU self-certified

on 1/26/2011

SSU acquired by CTI

on 3/15/2011

Solicitation amendments

issued on 7/29/2011

SSU submitted FPR on

10/13/2011

Appealed to OHA ◦ Re-certification required due to

1) Modifications - 13 CFR 121.404(a)

2) Acquisition - 13 CFR 121.404(g)(2)

◦ Acquisition agreement established prior to self-certification

OHA Decision ◦ Amendments did not make initial offer unresponsive; no

re-certification required ◦ Should rely on 13 CFR 121.404(a) , not13 CFR

121.404(g)(2) , for size determination ◦ Agreement in principle not reached (Non-binding, no set

price & due diligence conditions) ◦ OHA upheld Area Office determination

Main Issue Ostensible subcontractor analysis is fact specific and driven by solicitation requirements and response

Background ◦ Two IFBs and one RFP ◦ Involves ostensible subcontractor relationship between

small construction firm and OTSB ◦ Challenged concern received bonding assistance from

OTSB and proposed OTSB as a sub

Size Determination ◦ RFP: Undue reliance on OTSB for past performance, key

personnel and teaming agreement ◦ IFB: Lack of evidence for undue reliance on OTSB ◦ SBA Area Office found challenged concern small for IFBs

and OTS for RFP